Maple Lawn finances improving, consultant reports

Maple Lawn, the Branch County-owned nursing home and rehabilitation facility, is in good financial shape and can possibly pay back $500,000 in loans from the county as soon as next month, Director Jayne Sabaitis told a county commission work meeting Thursday.

Plant Moran principal accountant Jon Lanczak laid out the details of the nursing home industry and the problems they faced during the COVID-19 pandemic.

Lanczak said, “This two-year period really put a strain not only on Maple Lawn but on any facility. Because they weren’t paid their costs for those two years.”

With a cash flow deficit this year, Maple Lawn requested half of a $1 million loan from the county American Rescue Plan Act funds for a year. The facility cut its expenses.

Plant Moran does not audit Maple Lawn books. The accounting firm prepares Medicaid and Medicare cost reports for the county and private facilities necessary for federal and state reimbursement.  

The cost report from Plant Moran submitted to the state showed the nursing facility was underpaid during COVID-19 for the care provided to Medicaid residents.

When questioned by commissioners, Maple Lawn Controller Jessica Worden said, “I believe that Maple Lawn will return to a financially self-sufficient facility after we’re paid the amount owed from the state of Michigan. That’s over a million dollars for us taking care of Medicaid residents from October of 2021 through September of 2022.”

Lanczak agreed. “They make money on Medicaid, more than they do on Medicare and Medicare Advantage.”

Worden explained, “We’re a five-star facility well positioned to take care of the baby boomer generation. We’ve increased our census by over 20 beds the last couple of months. That should increase revenues by $213,900 per month.”

Thursday’s census was 109 of the maximum 114. The census can increase with more staffing. There are currently 103 full-time and 95 part-time employees.

All medical care faces a shortage of healthcare workers, Lanczak stated.

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Nursing home reimbursement is based on private pay rates, which Maple Lawn increased on Oct. 1. Worden said, “Which should bring an additional $191,068 per month in revenue” as reimbursement rates are adjusted.

Chairman Tim Stoll, director of the Thurston Woods Village, a senior not-for-profit care facility in Sturgis, said, “I would think that would bode well for the future, as long as your expenses don’t go any higher.”

Lanczak presented charts and graphs comparing the cost of all types of nursing care facilities.

Maple Lawn was overall in line with other county-owned facilities but much higher than for-profit nursing homes. The for-profit facilities “are spending a lot less money because they’re in it for different reasons. They’re in it to make money not to serve the community,” Lanczak said.

The consultant said the industry is changing, but the need for Maple Lawn will continue. “I think that demographics show there’s going to be an increased need, even though there’s more options out there for seniors.”  

Maple Lawn and the other 33 county nursing facilities were told they were not eligible when COVID-19 relief funds became available for Employee Retention Credits.

Lanczak said guidelines changed to include “all skilled nursing facilities.” County-owned facilities filed for funds. Maple Lawn could qualify for $3.6 million in ERC money.

Lanczak said the IRS challenged the guideline language interpretation. “They don’t believe that their business was suspended” as censuses dropped as facilities lost employees needed to operate.

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Plant Moran nationally is challenging that reasoning. That will take time and money. Lanczak told commissioners, “I do think in the end that county medical care facilities will get the money. I don’t know how soon it will be. It could be years.”

After Maple Lawn repays its loan, county commissioners intend to continue to monitor the nursing facility finances.

---Contact Don Reid: dReid@Gannett.com. 

This article originally appeared on Coldwater Daily Reporter: Maple Lawn finances improving, consultant reports